Though the one-day session hosted by IPPAI was named "Consumer Issues in Power" but the whole day had discussions more on the topic of Open Access in Maharashtra. The session was attended by representative from the state electricity regulator, state and private discom and transco, IPPs and EPC contractor.
Increase in power prices have an impact on companies that are power intensive and who are already grappling with increase in prices of other raw materials. With prices in both the power exchanges falling steeply it becomes all the more salivating for companies to opt for open access. That makes business sense also. But why are the companies not doing so. Even the Electricity Act 2003 enables to do so. The problem lies in the words "but" and "if" that are part of the Act. The Electricity Act allows the SERC(State Electricity Regulatory Commission) to implement open access when the SERC thinks that it will not lead to unhealthy competition and financial(monopolistic) loss to the exchequer.
The Industry Association also provided their view on the subject. The Association also showed how Open Access will benefit the State Electricity Companies,something which NASSCOM does, regularly, to show how America benefited from outsourcing. It was not only the private sector companies(consumers) that had expressed their views. Even there was participation by government companies and one of them was the largest consumer of Electricity, the Indian Railways.
The State Load Despatch Center (SLDC) also has its limitation on implementing open access. Already the SLDC is not able to tackle the congestion management problem that arise due to collective transactions happening through the Power Exchanges. The infrastructure for Load Management is well geared for long term bilateral contracts but yet to prepare for short term contracts which will increase if Open Access becomes a reality.
Open Access can be smoothly implemented with usage of modern tools available with us. Using forecasting tools and with availability of historical data, many of the uncertainties about supply and demand can be dispelled. What was missing in the discussion was innovation. Power sector in India has complex problems. Difficult problems call for better innovation. With modern day analytical tools solution can be found for the problems. Delaying implementation of Open Access can not be panacea for the Government. The Regulatory Commission can remain flexible till the policy is properly implemented but that should not give rise to sudden jerks which will become nightmare for the customers, IPPs, investors and the society at large.
Increase in power prices have an impact on companies that are power intensive and who are already grappling with increase in prices of other raw materials. With prices in both the power exchanges falling steeply it becomes all the more salivating for companies to opt for open access. That makes business sense also. But why are the companies not doing so. Even the Electricity Act 2003 enables to do so. The problem lies in the words "but" and "if" that are part of the Act. The Electricity Act allows the SERC(State Electricity Regulatory Commission) to implement open access when the SERC thinks that it will not lead to unhealthy competition and financial(monopolistic) loss to the exchequer.
The Industry Association also provided their view on the subject. The Association also showed how Open Access will benefit the State Electricity Companies,something which NASSCOM does, regularly, to show how America benefited from outsourcing. It was not only the private sector companies(consumers) that had expressed their views. Even there was participation by government companies and one of them was the largest consumer of Electricity, the Indian Railways.
The State Load Despatch Center (SLDC) also has its limitation on implementing open access. Already the SLDC is not able to tackle the congestion management problem that arise due to collective transactions happening through the Power Exchanges. The infrastructure for Load Management is well geared for long term bilateral contracts but yet to prepare for short term contracts which will increase if Open Access becomes a reality.
Open Access can be smoothly implemented with usage of modern tools available with us. Using forecasting tools and with availability of historical data, many of the uncertainties about supply and demand can be dispelled. What was missing in the discussion was innovation. Power sector in India has complex problems. Difficult problems call for better innovation. With modern day analytical tools solution can be found for the problems. Delaying implementation of Open Access can not be panacea for the Government. The Regulatory Commission can remain flexible till the policy is properly implemented but that should not give rise to sudden jerks which will become nightmare for the customers, IPPs, investors and the society at large.
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